Program Description

The Ministry of Defence (MINDEF) has awarded Boustead Naval Shipyards Sdn Bhd (BNS) a contract to procure new generation patrol vessel. BNS and its Original Equipment Manufacturers (OEMs) are obligated to provide EEP and Offset for the ICP policy as a way to support the initiatives of Shipbuilding and Ship Repair Industry Strategic Plan 2020 and MINDEF’s Defence Industry Blueprint. LCS ICP programme are divided into EEP for BNS and Offset Projects for the OEMs.

The EEP direct and indirect offset are mainly focusing on improving the local maritime industry capability and capacity through domestic direct investment, transfer of technology, human capital development and localization of the main contract package. The total ICV for LCS programme is approximately RM 9 billion and to be completed in year 2022.


AXIMA-Project 1 Transfer of Technology (ToT) for System Design and Architecture for HVAC System
AXIMA-Project 2 Transfer of Know- How of System Integration, Installation, Test and Trial
AXIMA-Project 3 Localisation – Subcontacting works to Daya OCI and Local company
IXBLUE-Project 1 Transfer of Technology on Integration, Installation, ITT and Manufacturing
IXBLUE-Project 2 Use of Local Labour and Services for Integration, installation, ITT, warranties activities and warehousing
IXBLUE-Project 3 Utilisation of Local Raw Material and Manufacturing of Components and Parts in Country
MSM-Project 1 MSM to Establish a Fully Equipped Local Test-Bed Facility for High Power Diese, Engines
MSM-Project 2 MSM to Establish a Simulation Training Centre for Integrated Platform Management System (IPMS) that is also capable of performing as a Shore Integration Facility (SIF) for Electronic Sub-Systems
MSM-Project 3 Establish a Genset Packaging Facility for Power Generation Systems
MSM-Project 4 MSM to Develop a Propulsion System Integration (PSI) expertise for Malaysia
MSM-Project 5 MSM to Develop a New Machinery Electronic Control System MRO and Training Centre
MSM-Project 6 MTU to grant License and Transfer of Technology to MSM for the Local Assembly (CKD) of MTU Series 4000 Engines
MSM-Project 7 Localisation of Sub-assemblies and parts for the MTU Genset and IPMS
RENK-Project 1 To Establish a Centre of Excellence for Maintenance, Repair and Overhaul (MRO) activities for RENK Marine Gearboxes for the Maritime Industry in Malaysia
RENK-Project 2 The Enhancement of local Technical Support Capability for RENK Marine Gear products in Malaysia
RENK-Project 3 Development of a Training Module for Main Reduction Gearing for an Apprenticeship Program
RENK-Project 4 Localisation of Sub-assemblies, Services and Parts for the RENK gearboxes
RHEINMETALL-Project 1 Transfer of Technology (ToT) For Production Training, Installation and Acceptance Test, Competency Development and Data Packages
RHEINMETALL-Project 2 Utilisation of Local Skilled Labour and Services for Assemble, Integrate and Test (AIT) the Prime Equipment
RHEINMETALL-Project 3 Utilization of Local Skilled Labour and Services for On-board Integration Services of the Prime Equipment
RHEINMETALL-Project 4 Imported Components and Parts Integrated into System Including manufacturing and Assembly
RHEINMETALL-Project 5 Investment for Tools and Asset Transfer to the Joint Venture Company
RHEINMETALL-Project 6 Utilization of Local Logistics and Warehousing Related Services
RHEINMETALL-Project 7 Development of Armament Industry in Malaysia